Document background
An Aircraft Purchase Letter of Intent is a crucial preliminary document used in aviation transactions to establish the framework for negotiations between potential buyers and sellers of aircraft. This document, governed by New Zealand law, typically precedes the more detailed Aircraft Purchase Agreement and outlines key commercial terms including aircraft specifications, proposed purchase price, payment structure, and timeline. While primarily non-binding, it often contains certain binding provisions such as confidentiality and exclusivity clauses. The document is particularly important in New Zealand's aviation sector as it helps ensure compliance with local aviation regulations and commercial law while providing a clear roadmap for the transaction. It's commonly used in both commercial and private aircraft transactions and serves as a formal expression of serious interest in proceeding with the purchase.
